Strata Schemes Management Regulation 2016

For the purposes of section 161(1)(a) of the Act, the minimum amount for which a building is to be insured is to be not less than the amount calculated in accordance with subclause (2).

For the purposes of section 161(2) of the Act, the amount to which the liability of an insurer may be limited under a damage policy is to be calculated by adding together the following amounts—

the estimated cost, as at the date of commencement of the damage policy, of—

carrying out the work that a damage policy is required to provide for under section 161 of the Act, and

making the payments that a damage policy is required to provide for under section 161 of the Act,

the estimated amount by which expenditure referred to in the preceding paragraphs may increase during the period of 24 months following the date of commencement of the damage policy.

The amounts referred to in subclause (2)(a) and (b) are to be calculated so as to include any applicable taxes, fees and charges (including taxes, fees and charges of the Commonwealth).